As more companies transition to the cloud, Oracle customers are being pushed to do the same. But migrating from on-premises Oracle licenses to Oracle Cloud is not always as seamless or cost-effective as it might seem. In fact, many organizations discover they’re being asked to buy licenses or services they do not really need. In this article, we break down what you should watch out for and how to avoid unnecessary costs during your move to Oracle Cloud.
1. Are You Paying Twice?
If you have already purchased perpetual Oracle licenses, you might expect to carry those over to the cloud. Unfortunately, Oracle often requires customers to re-purchase those licenses as part of a cloud subscription model. That means you’re converting a one-time investment into ongoing costs.
Pro Tip: Look into Oracle’s BYOL (Bring Your Own License) program. It could save you significant money if your existing licenses are eligible.
2. Beware of Cloud Bundles You Don’t Need
Oracle frequently bundles infrastructure services (OCI) with platform-as-a-service (PaaS) offerings. While that might sound convenient, it can result in your organization paying for excess compute power or storage you don’t need or use.
Pro Tip: Do a needs assessment before signing anything. Only pay for what you actually plan to use.
3. ULA Expiration Pressure
If you are approaching the end of an Oracle Unlimited License Agreement (ULA), be prepared: Oracle may try to steer you toward converting your ULA into a multi-year Oracle Cloud commitment. While that might seem like a straightforward solution, these conversions often come with steep financial commitments.
Pro Tip: Carefully evaluate your ULA exit strategy. You may be able to certify and retain licenses without moving to the cloud.
4. Not All Licenses Are Transferable
Just because you own Oracle licenses doesn’t mean they’re eligible for cloud deployment. Licenses obtained through discounts or third-party resellers may not qualify for BYOL, and Oracle may require you to repurchase them at full cloud prices.
Pro Tip: Verify license portability before planning your cloud migration.
5. The Upgrade Trap
Some customers find that their existing Oracle products, such as Standard Edition databases, are no longer offered in the cloud. Oracle may require you to upgrade to higher-tier products (like Enterprise Edition) that come with more features—and more costs—than you need.
Pro Tip: Don’t be pressured into upgrades unless your business actually requires those advanced features.
How Palisade Compliance Can Help
At Palisade Compliance, we help organizations navigate the complexities of Oracle Cloud migrations. Our team will:
- Identify what you truly need to move to the cloud.
- Push back on unnecessary product bundles and upsells.
- Help you leverage your existing licenses (BYOL) effectively.
- Structure cost-efficient, scalable Oracle Cloud agreements.
- Ensure you’re not paying twice for the same software.
Conclusion Before making the leap to Oracle Cloud, make sure you’re not stepping into a trap of extra costs and unneeded services. A thoughtful, strategic approach—backed by independent experts—can help you save money, retain flexibility, and maintain control over your Oracle relationship.
Want to talk about your Oracle Cloud strategy?
Reach out to the team at Palisade Compliance today.
📧 eheyburn@palisadecompliance.com
📞 (609) 474-3838
🌐 www.palisadecompliance.com
🔗 LinkedIn: Palisade Compliance